U.S Auto Dealers Instructed Not To Sell To Canadians

 

Automakers are telling their U.S dealers not to sell to Canadians, according to a report from CBC News.

In reporting on a story regarding the price descrepency between Canadian MSRP’s and American MSRP’s, especially for cars produced here in Canada, they discovered the trend.

The story of differing MSRP’s is not a new one, however the discovery of non-sale orders to Canucks is.

The top five automakers which is Ford, GM, Chrysler, Toyota and Honda, have all apparently instructed their U.S dealer franchises to not sell to us due to the fact that they fear losing Canadian franchises if all their potential business goes south.  The price descrepency of thousands of dollars between identical cars is the main reason why buying south of the border is so enticing in the first place.

In fact, it has been reported that if a U.S salesperson does indeed sell to a Canadian he or she could risk losing their job and the franchise becomes in danger of being shut down. Several GM dealerships in the states have come foward to admit receiving letters from their head offices stating that they are to sell to U.S customers only and cited a slap on the wrist for a first offence, but then losing the business entirely for multiple offences.

However probably the biggest issue is that under American law, it is illegal to refuse service under the anti-trust law. And the American government is doing little to crack down on these cases which are numerous.

What do you think of cross-border buying obstacles?

[CBC News]